An amendment to the government's education bill, which will mean that schools will continue to have a legal duty to work in partnership with wider children's services, has been welcomed by social care leaders.

The amendment was laid by government minister Lord Hill, child protection expert Lord Laming and Liberal Democrat spokeswoman on children and families Lady Walmsley. It signals government recognition that schools have a role to play in supporting vulnerable children.

A spokeswoman for the Department for Education told Guardian Social Care that the government will retain the duty on schools and colleges to co-operate with the local authority and other "relevant partners" in making arrangements to improve the well-being of children.

However, she said the "associated prescriptive guidance and regulations" have been removed and the government believes that the duty allows enough scope for local areas to "create meaningful co-operation arrangements that can be responsive to local needs".

"We have always been in favour of schools and other local bodies working together – we just don't think that we need to tell them how to do it," she added.

Matt Dunkley, president of the Association of Directors of Children's Services, welcomed the move. "Restoring the duty makes clear that all schools have a crucial role to play in provision for vulnerable children, including special education needs and work with families with multiple problems.

"Nick Clegg cautioned that teachers must not be expected to be social workers or health workers and that is absolutely right, but they should work with those other professionals for the benefit of children and young people."